A single HVAC replacement can cost $5,000 to $12,500. A water heater failure runs $1,200 to $2,500. When a major system or appliance breaks down without warning, the repair bill can throw a budget into chaos. A home warranty is designed to absorb exactly that kind of shock — covering repair or replacement costs for your systems and appliances when they fail from normal wear and tear.
We analyzed seven of the top home warranty providers on price, coverage breadth, service fees, payout limits, contract terms, and verified customer experience. Here’s what we found.
- Home warranty plans typically cost $30–$70/month ($360–$840/year) plus a per-claim service fee of $75–$125.
- All plans have a 30-day waiting period before coverage begins and exclude pre-existing conditions — with some exceptions.
- The biggest differentiators across providers: payout caps per item, service call fees, contractor network quality, and whether you can use your own technician.
- Combination plans (systems + appliances) offer the best value for most homeowners versus buying separate coverage types.
- The U.S. home warranty market reached $4.6 billion in 2024, with roughly 5% of homeowners currently holding coverage.
Table of Contents
- How We Evaluated These Companies
- 1. American Home Shield — Best Overall
- 2. Select Home Warranty — Best Budget Option
- 3. Liberty Home Guard — Best for Add-Ons
- 4. First American Home Warranty — Best for Older Homes
- 5. AFC Home Club — Best for Using Your Own Contractor
- 6. Cinch Home Services — Best Workmanship Guarantee
- 7. 2-10 Home Buyers Warranty — Best for Real Estate Transactions
- Side-by-Side Comparison
- What a Home Warranty Covers (and Doesn’t)
- How Much Does a Home Warranty Cost?
- Home Warranty vs. Homeowners Insurance
- How to Choose the Right Plan
- Frequently Asked Questions
How We Evaluated These Companies
Our methodology focused on four areas. For coverage and transparency, we reviewed each company’s sample contracts to identify exactly what’s covered, what’s excluded, and what the payout limits are per item. We favored companies that disclose caps clearly upfront. For cost and value, we compared monthly premiums, service call fees, and overall coverage limits to assess whether the plan delivers real financial protection relative to its price. For claims process, we evaluated how claims are filed (phone, app, online), typical response times, and contractor dispatch speed. For reputation, we checked Better Business Bureau ratings, Trustpilot reviews, and National Home Service Contract Association (NHSCA) membership.
1. American Home Shield — Best Overall
American Home Shield has over 50 years in the industry and serves more than 2 million members — making it the largest home warranty provider in the U.S. Their plans stand out for covering systems and appliances with no age restrictions, and for accepting some pre-existing conditions that were unknown at enrollment.
Plans and pricing:
- ShieldSilver: Covers 14 major home systems (HVAC, plumbing, electrical, and more)
- ShieldGold: Adds 9 essential appliances (refrigerator, washer, dryer, dishwasher, etc.)
- ShieldPlatinum: Most comprehensive — includes everything above, plus roof leak repair up to $1,500, higher coverage limits, and free seasonal HVAC tune-ups
Monthly premiums typically run $50–$100 depending on plan and service fee option. You choose between a $100 or $125 service fee — a lower fee means a slightly higher monthly premium.
Pros: No age limits on covered items; covers some unknown pre-existing conditions; flexible service fee options; large contractor network with fast dispatch.
Cons: Higher premiums than budget providers; only a 30-day workmanship guarantee; not available in Alaska, Hawaii, or New York City.
Best for: Homeowners who want comprehensive, reputable coverage without worrying about the age of their systems or appliances.
Learn more about American Home Shield >>
2. Select Home Warranty — Best Budget Option
Select Home Warranty is one of the most affordable options among established providers, regularly offering promotional pricing that can bring annual costs below $400. They cover a solid range of systems and appliances across three plan tiers (Bronze Care: appliances; Gold Care: systems; Platinum Care: both), with service fees in the $75–$100 range.
Pros: Competitive pricing; frequent promotional discounts; combination plan covers both systems and appliances; 2-month free trial often available on annual contracts.
Cons: Lower coverage caps per item than American Home Shield; HVAC coverage has tighter limits; shorter contractor availability windows in some regions; BBB rating history has been mixed — verify current standing before purchasing.
Best for: Budget-conscious homeowners who want basic coverage for major breakdowns without paying premium prices.
Learn more about Select Home Warranty >>
3. Liberty Home Guard — Best for Add-Ons
Liberty Home Guard offers one of the most extensive catalogs of optional add-on coverage in the industry — over 40 additional items including pools, spas, roof leaks, well pumps, sump pumps, stand-alone freezers, and even pest control. Their base plans are competitively priced, and the ability to customize coverage makes them particularly useful for homes with above-average equipment.
Plans: Appliance Guard; Systems Guard; Total Home Guard (combination)
Pros: Industry-leading add-on catalog; strong Trustpilot reviews; competitive base pricing; 60-day workmanship guarantee (better than most competitors); 24/7 claims portal.
Cons: Service fee ($80–$125) varies by plan and region; base payout caps are moderate — confirm per-item limits on HVAC before purchasing.
Best for: Homeowners with pools, spas, well pumps, or other specialty equipment who want to bundle coverage in a single plan.
Learn more about Liberty Home Guard >>
4. First American Home Warranty — Best for Older Homes
First American has been in business since 1984 and is backed by First American Financial Corporation, a Fortune 500 company — giving it financial stability most competitors can’t match. Their plans cover systems and appliances regardless of age, with no inspection required, and they’ve built a reputation for handling complex claims on aging equipment.
Plans: Basic Plan (appliances); Premier Plan (systems and appliances combined)
Pros: Strong financial backing; covers older systems without age restrictions or inspections; available in 35+ states; First American Financial provides institutional credibility; competitive service fees ($85–$125).
Cons: Fewer plan customization options than some competitors; not available nationwide; customer service volume can create wait times during peak claim seasons.
Best for: Homeowners with older homes (15+ years) or aging HVAC and plumbing who want a financially stable company that won’t question equipment age.
Learn more about First American Home Warranty >>
5. AFC Home Club — Best for Using Your Own Contractor
AFC Home Club stands out for one specific feature: they allow you to use your own licensed contractor for covered repairs, rather than requiring you to use a company-dispatched technician. This matters if you have established relationships with local HVAC or plumbing professionals whose work quality you trust.
Plans: Silver Plan; Gold Plan; Platinum Plan; Diamond Plan
Pros: Use your own contractor; lifetime repair guarantee (as long as you’re a member); competitive pricing; no per-item coverage caps on many items (covers full repair/replacement cost subject to policy terms).
Cons: Must submit contractor invoices and go through a reimbursement process rather than direct dispatch; slower resolution versus companies that dispatch contractors themselves; limited contractor availability in rural areas.
Best for: Homeowners who have trusted local contractors or who’ve had bad experiences with warranty company-dispatched technicians.
Visit AFC Home Club’s website >>
6. Cinch Home Services — Best Workmanship Guarantee
Cinch offers one of the strongest workmanship guarantees in the industry — 180 days on completed repairs, versus the typical 30 days. They also provide a unique homeowners insurance deductible reimbursement benefit (up to $500 per year) that’s rare in the space, and include a $25 credit toward air and water filters with certain plans.
Plans: Appliances Plan; Built-In Systems Plan; Complete Home Plan
Pros: 180-day workmanship guarantee; insurance deductible reimbursement; filter credit; 24/7 claims support; strong digital tools and account management.
Cons: Higher premium pricing for the Complete Home Plan; service fees ($100–$150) on the higher end; pre-existing condition exclusions are more strictly enforced than some competitors.
Best for: Homeowners who prioritize post-repair workmanship protection and want a financially sophisticated plan with supplemental benefits.
Visit Cinch’s website to learn more >>
7. 2-10 Home Buyers Warranty — Best for Real Estate Transactions
2-10 HBW is unique in that it originally specialized in builder warranties for new construction, and its real estate transaction arm provides home warranty plans sold through real estate agents at closing. If you’re buying a home and the seller is offering a home warranty, 2-10 is a common provider. They’ve since expanded to standalone homeowner plans as well.
Plans: Simply Kitchen; Secure; Supreme
Pros: Strong relationships in the real estate industry; well-regarded in new construction warranty space; responsive claims team; Supreme plan covers both systems and appliances comprehensively.
Cons: Better positioned for new buyers than long-term homeowners; pricing less competitive for standalone annual plans compared to Select or AFC; not available in all states.
Best for: Home buyers receiving a warranty at closing, or new construction homeowners who want structural and systems coverage from a single provider.
Visit 2-10 Home Buyers Warranty’s website >>
Side-by-Side Comparison
| Company | Monthly Cost | Service Fee | Workmanship Guarantee | BBB Rating | Best For |
|---|---|---|---|---|---|
| American Home Shield | $50–$100 | $100–$125 | 30 days | A- | Overall coverage |
| Select Home Warranty | $35–$60 | $75–$100 | 30 days | B | Budget buyers |
| Liberty Home Guard | $45–$70 | $80–$125 | 60 days | A+ | Custom add-ons |
| First American | $45–$80 | $85–$125 | 30 days | A | Older homes |
| AFC Home Club | $40–$70 | $75–$125 | Lifetime (member) | A+ | Own contractor |
| Cinch Home Services | $50–$90 | $100–$150 | 180 days | B | Workmanship |
| 2-10 HBW | $40–$75 | $75–$125 | 30 days | A | New buyers / builders |
What a Home Warranty Covers (and Doesn’t)
A home warranty is a service contract that covers repair or replacement of home systems and appliances when they fail due to normal wear and tear. It is not insurance — it doesn’t cover damage from sudden events like fires, floods, or storms. That’s what homeowners insurance handles.
Typically covered by combination plans:
- HVAC systems (heating, central air conditioning)
- Plumbing systems and stoppages
- Electrical systems and panels
- Water heaters
- Refrigerator, dishwasher, built-in microwave
- Washer and dryer
- Garbage disposal
Common exclusions:
- Pre-existing conditions known at enrollment (most plans)
- Cosmetic damage (scratches, dents, broken knobs)
- Damage from improper installation, misuse, or lack of maintenance
- Structural components (roof, foundation, walls)
- Items already covered by a manufacturer’s warranty
- Secondary damage caused by a covered item’s failure (e.g., water damage from a leaking appliance)
Always read the sample contract for any plan you’re considering — coverage caps per item are particularly important. A plan might cover your HVAC system but cap the payout at $1,500, leaving you to cover the remainder of a $6,000 replacement out of pocket.
How Much Does a Home Warranty Cost?
Total annual cost has two components: your plan premium plus any service fees paid when claims are made.
Plan premiums typically run $360–$840 per year ($30–$70/month). Service fees — the amount you pay per claim when a technician is dispatched — typically run $75–$150. You might pay a service fee even if the technician determines your issue isn’t covered, so reading the fine print on what triggers a fee matters.
The net value calculation is simple: if the plan costs $600/year and your one covered claim saves you $2,500 on a water heater, you’re ahead. If you never file a claim, you’ve paid $600 for peace of mind. Many homeowners find the tradeoff worthwhile, especially for older homes where systems and appliances are statistically more likely to fail.
Home Warranty vs. Homeowners Insurance
| Home Warranty | Homeowners Insurance | |
|---|---|---|
| What it covers | Mechanical breakdown from wear and tear | Sudden damage from covered perils (fire, storm, theft) |
| Required by lender? | No | Yes (if you have a mortgage) |
| Annual cost | $360–$840 + service fees | Varies; national average ~$2,500/year |
| Per-claim fee | $75–$150 service fee | $500–$2,500+ deductible |
You need both for complete protection. Insurance covers catastrophic events; a warranty covers the steady-state deterioration of your home’s mechanical systems. Neither replaces the other. See our homeowners insurance guide for full coverage advice.
How to Choose the Right Plan
- Assess your home’s age and condition. Homes older than 15–20 years with original systems and appliances carry more failure risk — a comprehensive combination plan makes more sense. Newer homes with manufacturer warranties still in effect may need less coverage.
- Know your pain points. If your HVAC system is aging, prioritize a plan with high HVAC coverage limits. If your kitchen appliances are newer, a systems-only plan may serve you better.
- Check per-item caps. A $500 cap on HVAC repairs doesn’t protect you from a $6,000 furnace replacement. Compare caps across providers before deciding.
- Understand the service fee model. Some plans let you choose your service fee tier at enrollment. A lower service fee ($75) means a higher premium, and vice versa. Choose based on how often you expect to file claims.
- Read the exclusions carefully. Every contract has exclusions. Pre-existing conditions, improper installation, and lack of maintenance are the most common denial reasons. Review these sections before purchasing.
Frequently Asked Questions
For most homeowners — especially those with older systems and appliances or limited emergency savings — yes. A single avoided repair claim often pays for two or three years of premiums. It’s less of a financial play and more of a budgeting tool: trading unpredictable large costs for predictable small ones.
Pre-existing conditions, cosmetic damage, improper installation, lack of maintenance, and structural components are the most common exclusions. Each plan’s contract specifies its exclusions — always review the sample contract before purchasing, not just the marketing summary.
Yes. Most providers, including American Home Shield and First American, cover systems and appliances regardless of age with no inspection required. Conditions that were pre-existing at enrollment are excluded, but normal age-related breakdown is typically covered.
A systems plan covers major mechanical systems: HVAC, plumbing, electrical, and water heater. An appliances plan covers kitchen and laundry appliances: refrigerator, dishwasher, washer, dryer, etc. A combination plan covers both. For most homeowners, a combination plan provides the best value and the most financial protection.
Log into your provider’s portal, call their claims line, or use their app to report the issue. The company dispatches a contractor from their network (or, with AFC, allows you to call your own). You pay the service fee at the appointment. If the repair is covered, the contractor completes the work at no additional cost to you beyond that fee.
